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HUGO BOSS

Investor Meeting Presentation

(3)

Agenda

American strategy update

Financial strategy update Group medium-term strategy

(4)

Agenda

American strategy update

Financial strategy update Group medium-term strategy

(5)

Continued strong top and bottom line momentum 750 469 350 267 272 275 +19% 2015e 3,000 … 2011 2,059 2010 1,729 2009 +34% 1,562 2008 1,686 2007 1,632

EBITDA before special items Sales

Sales and EBITDA before special items

(6)

Successful execution of medium-term strategy STRIVING FOR OPERATIONAL EXCELLENCE STRENGTHENING OUR BRANDS EXPLOITING GLOBAL GROWTH OPPORTUNITIES MAXIMIZING CONSUMER FOCUS TO DRIVE RETAIL

(7)
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(9)
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Integration of BOSS Black and BOSS Selection elevates the core brand

Strengthens the core brand’s market position in luxury clothing and sportswear

Leverages BOSS growth potential across different

fashion segments from premium to luxury

Maximizes the power and global recognition of the BOSS logo

(12)

Made to Measure demonstrates unrivalled tailoring competence

Modern technology and uncompromising

quality “handmade in Germany”

Combines excellent craftsmanship,

premium materials and tailor made service with efficient industrial

manufacturing

Permanently offered in several European

flagship stores

(13)

HUGO brand the Group’s fashion spearhead

Strong positioning as home of

avant-garde design

Focus on clean, minimalistic looks

addressing the fashion-forward consumer

Targeted expansion of stand-alone

retail presence

Significant growth potential in underpenetrated markets

(14)

Strength in sportswear key competitive advantage

Sportswear elegance

Contemporary urban sportswear

Active sportswear

Collection Occasion to wear

Casual Friday Luxury Weekend Daywear Downtime Party Sporty lifestyle Performance

(15)

All brands ready to exploit potential of global sportswear market

Offer the best price-value relationship in the premium segment

Enhance clarity of product branding

Firmly establish BOSS Orange as key premium lifestyle brand at wholesale

Convince in leading edge technical innovation

Strengthen distribution in golf performance accounts

Maximize commercial potential of golf pro cooperations

Strengthen product offering in luxury segment

Sharpen DNA of ‘Sportswear Elegance’

(16)

Clear womenswear strategy in place

Offer excellent and reliable fit with favorable price-value ratio

Grow modern clothing business based on

tailoring expertise

Maximize brand potential in leisurewear

Grow shoes & accessories supplementing core apparel offering

Introduce party capsules and evening

collection

(17)

Clear womenswear strategy in place (cont.)

Communication

Regular participation at New York Fashion Week

Dedicated womenswear advertising campaign

Organization

Separate organizational entity Distribution

Increased exposure of BOSS womenswear in all

(18)

Unprecedented fashion show presence in 2013

(19)

HUGO showcases collections in Berlin

(20)

Share of retail sales set to grow further

Wholesale Retail

Royalties

Sales by distribution channel

2005 3% 75% 22% 2010 3% 57% 40% 2011 2% 53% 45% 2015e 2% 43% 55%

(21)

Introduction of four season cycle has made HUGO BOSS a true retailer

December January February March April

June July August September October

Spring 2012 Summer 2012

Fall 2012

(22)

Introduction of four season cycle has made HUGO BOSS a true retailer (cont.) 12% 8% 40% 46% 11% 7% 37% 39% 2012 2011

Seasonal split of wholesale pre-order business

Fresher merchandise offering

Better adjustment to seasonal differences in consumer demand

Immediate relevance at the point-of-sale

Working capital advantages

Development of collection complexity

-7%

2012e 2011

(23)
(24)

Brand module architecture supports more flexible merchandise offering

“S” Module

“XL” Module

(25)

Core range has demonstrated superior performance

Share of core range

0 10 20 30 40 50 60 70 0 5 10 15 20 25 30 35 40 Fall 2012 70% 33% Spring 2012 67% 28% Fall 2011 45% 15%

Units sold per style (Fall 2012)

x 4.7

Core range Non core range

Core range style/color (s/c) as % of total collection s/c Value share of core range

(26)

Heat mapping technology newest in-store design innovation

Purpose Benefits

Enhances understanding of consumer behavior to drive operational performance

Generates traffic map

showing the actual footpath of consumers in the store over the course of the day

Overlay with

transactional data offers insights into correlation between traffic and sales per product category

Optimizes product and campaign positioning

Supports optimization of space utilization and staff allocation

Assesses visual

merchandising effectiveness

Window Window

Suit wall Shirt wall Bodywear Sh o e s / Acce s s Tie table Belt Knitwear Outerwear Kn it w e a r Entrance

(27)

Systematic retail management ensures highest customer service standards Customer Service Training Mystery Shopping Store Operations Manual Incentives sets standards

measures and monitors

(28)

Retail training activities stepped up significantly

Roll-out of standardized multi-language online training solution

Focus on systematic strengthening of product

competence, selling skills, and store management capabilities

Supplemented by targeted face-to-face

training sessions YTD 2012 29,500 2011 22,100 2010 15,800 2009 14,100

(29)

CRM @ HUGO BOSS - Sharpen the end consumer focus

Understand our customers

Win new customers

Increase customer loyalty

Increase frequency of visits

Increase sales / turnover Customer data collection & quality Marketing planning Analysis & segmentation

Worldwide HUGO BOSS CRM platform (IT) HUGO BOSS CRM strategy and guidelines

CRM activities

(30)

IT and system upgrades improve retail performance management

Retail operations almost entirely on SAP

Implementation of global retail merchandise

planning solution under way

In-store systems provide basis for systematic performance measurement

(31)

Enhanced logistics infrastructure caters to growing retail business

Flat-packed goods distribution center Europe Filderstadt, Germany

 New construction

 Start of operation: 2014

Regional distribution centers Asia Shanghai and Hong Kong

 Relocation and consolidation

 Operational since 2011

Distribution center Mexico

Mexico City, Mexico

(32)

Target to open 50 new stores per annum

TOTAL: 791

EUROPE*: 428

ASIA/PACIFIC: 221

(33)

Expansion of mono-brand distribution elevates brand experience

Flagships in mega-cities

Directly operated

stores Controlled space

E-Commerce M-Commerce

One face to the customer across all points-of-sale

Push the customer

experience to the next level of retail innovation

Ideal platform to

showcase all HUGO BOSS brands under one roof

Capturing full brand

potential through expansion into ‘white spaces’ globally

Renovations and extensions

Expansion of mono-branded shop-in-shops at key accounts globally

Either managed by retail partners or HUGO BOSS (concession model)

Continued rollout in high potential markets

Constant evolution of brand experience

(34)

High-visibility flagship store openings planned in 2013

BOSS Store Shanghai, Kerry Center

BOSS Store Tokyo, BOSS Store Shanghai,

BOSS Store Amsterdam, Leidsestraat

BOSS Store Berlin, Kurfürstendamm

(35)

Wholesale remains an important distribution channel

40+ year business relationships

Reliable sell-through performance

Grown retail competence

Industry-leading delivery and service levels

HUGO BOSS is best positioned for further growth…

…despite structural headwinds

Limited space expansion

Mono-brand nature of fast growing emerging markets

Ongoing consolidation

Franchise takeovers

+7%

Average net sales per wholesale POS 45% // Retail

53% // Wholesale 2% // Royalties

38% // Multibrand

15% // Franchise Sales by distribution channel 2011

(36)

Significant growth opportunities in all three regions Europe* Royalties Americas Sales by region 2005 3% 71% 18% 8% 2010 3% 62% 22% 13% 2011 2% 61% 22% 15% 2015e 2% 54% 23% 21%

Asia/Pacific

(37)

Agenda

American strategy update

Financial strategy update Group medium-term strategy

(38)

Favorable brand perception across the region

Modern

Well-tailored

Easy to fit

Consistent

USA CANADA MEXICO BRAZIL

Seen as a premium

to entry luxury

High awareness of

individual brand lines

BOSS Black and

HUGO are the major brands

Prestigious

Good price-value

Easy to fit

Consistent

Luxurious

Classic

Elegant

Quality

Modern

Classic

Sophisticated

Masculine

Seen as an entry

into the luxury world

Good brand

positioning in clothing, jeans, jersey and shirts

Recognized as a

fashion brand for perfect fitted suits

A top of mind in fragrances

(39)

HUGO BOSS has clear competitive advantages in the Americas

Style

HUGO BOSS leads the modern, wear-to-work market for men

and women

HUGO BOSS has great name recognition in all regional markets

Quality

HUGO BOSS is recognized as providing consistency in fit and quality

European lifestyle brand value in the Americas

HUGO BOSS is seen as having a strong price/value relationship

(40)

Broad portfolio of unique brands

U.S.A. Canada Brazil Mexico

Americas* BOSS BOSS Selection BOSS Orange BOSS Green HUGO

Differentiated brands allow us to speak to different customer segments

*All splits based on full year 2012 sales estimates

76% // BOSS

2% // BOSS Selection 8% // BOSS Orange 7% // BOSS Green 7% // HUGO

(41)

Attractive growth opportunities across several categories

HUGO menswear clothing

Introduction of suit separates in Fall ‘12 with positive early response

BOSS womenswear clothing

Direct involvement with designers in the U.S. to increase regionally relevant content

BOSS men’s shoes

Development of strong good/better/best strategy with $295 Italian made shoes for Fall ‘13

BOSS replenishment programs

Relaunch of sportswear basics and bodywear

(42)

Continued store expansion in the Americas

Total number of own retail stores in the Americas amounts to 142 stores at the end of September 2012

Around 15 store openings across the region projected for 2013

Number of stores in Brazil to double between 2011 and 2013

33 35 22 43 142 64 108 53 Outlets Stores Shop-in-shops

Number of own retail POS // Americas

8 44 19 71 Brazil Mexico Canada USA

Own retail POS in the Americas by country (as of Sep. 30, 2012)

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HUGO BOSS wins market share at wholesale

Q1 2012 Q2 2012 Q3 2012

Wholesale sales YTD Sep. ’12** Reported comp store sales growth*

+3.5% +4.8% +4.7% +3.3% +9.3% +4.9% +11.2% +4.4% +3.0% +3.7% +5.0% +3.0% +5.0% +14%

* Figures exclude online sales segment whenever available ** Total U.S. wholesale sales

(46)

Controlled retail space upgrades brand presentation

Aggressive development over past two years

BOSS collection launched in 18 Neiman

Marcus doors

Shop-in-shop expansion Number of U.S. shop-in-shops

37 2 2013e ~70 2012e ~45 2011 2010

Transition to concession business model

Increased sales at retail through:

Dominant assortments

Controlled merchandising

Dedicated sales associates

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Agenda

American strategy update

Financial strategy update Group medium-term strategy

(49)

Continued focus on profitable growth

Space expansion and comp store sales growth

Growth across all regions

Above-average increases in underpenetrated

categories

Distribution channel mix to benefit gross margin

Comp store sales growth to leverage

retail cost base

Marketing expenditures between 6%

and 7% of Group sales

Below-average growth of all other

operating expenses +10% 2,059 3,000 2011 … 2015e CAGR +12.5% 469 750 CAGR 2011 … 2015e Sales

(in EUR million)

EBITDA

(50)

Working capital management key focus to maximize free cash flow

Average trade net working capital as a percentage of sales at year-end

(in %) 19.9 2011 2010 19.2 2009 24.6 2008 29.2 2007 28.2

(51)

Dividend strategy confirmed 0 10 20 30 40 50 60 70 80 90 2.50 2.00 1.50 1.00 0.50 0.00 2011 2.88 70% 2010 2.02 75% 2009 0.96 64% 2008 1.37 85% 3.00 1.45 65% 2006 1.19 64% 2005 1.00 65% 2004 0.84 67% 2003 0.78 67% 2002 0.75 71% 2007 Dividend* and payout ratio**

Dividend policy stipulates distribution of 60% to 80% of consolidated net profit

Payout ratio Dividend

(52)

Strong cash flow generation to support further debt reduction

Free cash flow

(in EUR million)

Net debt

(in EUR million)

149 201 379 583 174 2011 2010 2009 2008 2007 193 246 300 48 33 2011 2010 2009 2008 2007

(53)

Agenda

American strategy update

Financial strategy update Group medium-term strategy

(54)

2012 guidance confirmed

Growth of EBITDA before special items 10% to 12%

2012 Outlook

Sales growth (currency-adjusted) Up to 10%

Capex Above prior year level

Own retail network Around 80 net organic openings

(55)

HUGO BOSS on track for achievement of short- and medium-term targets

Transformation from wholesale-minded to

consumer-focused company well under way

All four strategy pillars contribute to growth

Strong performance in the Americas

Further progress towards achievement

(56)
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5-Year Overview in EUR million 2011 2010 2009 2008 2007 Earnings Position Sales 2,058.8 1,729.4 1,561.9 1,686.1 1,632.0 Gross Profit 1,264.8 1,027.2 847.1 891.0 845.0 EBITDA 467.5 336.1 224.5 236.0 287.1 EBITDA before special items 469.0 349.8 267.2 272.4 274.7 EBIT 394.1 263.9 155.4 175.0 219.7 Net income attributable to equity holders of the parent company 284.5 185.9 104.0 112.1 154.2

Financial Position and Dividend

Free cash flow 193.3 246.3 299.5 48.1 33.0 Net debt 149.1 201.1 379.1 583.2 173.6 Capital expenditures 108.5 55.6 48.3 118.8 84.7 Depreciation/amortization 73.4 72.2 69.1 61.0 67.4 Dividend 199,1 139.7 66.6 94.9 100.4

Special dividend - - - - 345.1

Asset and Liability Structure

Total assets 1,449.0 1,355.4 1,065.4 1,161.6 1,039.3 Shareholders' equity 523.2 361.2 205.5 202.9 550.7 Trade net working capital 407.4 204.8 223.0 391.9 397.4 Non-current assets 524.9 467.2 435.0 463.0 400.5

Key Figures

Gross profit margin in % 61.4 59.4 54.2 52.8 51.8 Adjusted EBITDA margin in %* 22.8 20.2 17.1 16.2 16.8 EBIT margin in % 19.1 15.3 10.0 10.4 13.5 Total leverage* * 0.3 0.6 1.4 2.1 0.6 Equity ratio in % 36.1 26.6 19.3 17.5 53.0

* EBITDA before special items/Sales

(58)

Sales

(in EUR million)

Gross margin

(in %)

EBITDA before special items

(in EUR million)

Net debt

(in EUR million)

Nine months results at a glance

+11% 9M 2012 1,739 9M 2011 1,560 +1.2pp 9M 2012 61.1% 9M 2011 59.9% 250 247 +1% 392 372 +5%

(59)

Profit & loss statement

* Basic and diluted shares

in EUR million Q3 2012 Q3 2011 Change in %

Jan.-Sep. 2012 Jan.-Sep. 2011 Change in % Net sales 646.3 615.0 5 1,738.5 1,559.6 11 Cost of sales (245.0) (241.1) (2) (642.8) (596.4) (8) Direct selling expenses (12.6) (12.0) (5) (34.0) (29.0) (17) Gross profit 388.7 361.9 7 1,061.7 934.2 14

in % of sales 60.1 58.8 1.3 pp 61.1 59.9 1.2 pp

Selling and distribution expenses (193.2) (159.1) (21) (573.3) (473.2) (21) Administration costs and other operating income and expenses (52.7) (43.1) (22) (156.8) (139.6) (12) Operating result (EBIT) 142.8 159.7 (11) 331.6 321.4 3

in % of sales 22.1 26.0 (3.9 pp) 19.1 20.6 (1.5 pp)

Net interest income/expense (4.2) (4.1) (2) (11.6) (11.8) 2 Other financial items (2.6) 2.0 <(100) (3.4) 1.2 <(100) Financial result (6.8) (2.1) <(100) (15.0) (10.6) (42) Earnings before taxes 136.0 157.6 (14) 316.6 310.8 2 Income taxes (32.6) (37.9) 14 (76.0) (74.6) (2) Net income 103.4 119.7 (14) 240.6 236.2 2 Attributable to:

Equity holders of the parent company 103.6 118.0 (12) 237.7 231.1 3 Minority interests (0.2) 1.7 <(100) 2.9 5.1 (43) Net income 103.4 119.7 (14) 240.6 236.2 2 Earnings per share (EUR)*

Ordinary share 1.50 1.71 (12) 3.44 3.34 3 Preferred share** 1.71 3.35

EBITDA before special items 165.4 177.1 (7) 391.7 372.1 5 in % of sales 25.6 28.8 (3.2 pp) 22.5 23.9 (1.4 pp)

(60)

Sales by distribution channel 17 11 25 2 7 17 19 -1 -5 0 5 10 15 20 25 30 Group Royalties Retail Wholesale fx adjusted in euro Sales growth by channel, y-o-y

9M 2012 (in %) 5 16 23 -5 0 16 15 -9 -10 -5 0 5 10 15 20 25 Group Royalties Retail Wholesale fx adjusted in euro Sales growth by channel, y-o-y

Q3 2012 (in %)

(61)

Sales by region 11 16 22 7 7 5 13 6 0 5 10 15 20 25 Group Asia/Pacific Americas Europe* fx adjusted in euro Sales growth by region, y-o-y

9M 2012 (in %) 13 5 13 25 -3 0 0 -4 -5 0 5 10 15 20 25 30 Group Asia/Pacific Americas Europe* fx adjusted in euro Sales growth by region, y-o-y

Q3 2012 (in %)

(62)

Trade net working capital 0 5 10 15 20 25 30 Q4 2011 19.9 Q3 2011 19.6 Q2 2011 19.3 Q1 2011 19.1 Q4 2010 19.2 Q3 2010 19.9 Q2 2010 20.9 Q1 2010 Q3 2009 27.2 Q2 2009 28.5 Q1 2009 29.7 22.7 +1.4pp Q3 2012 21.0 Q2 2012 20.8 Q1 2012 20.2 24.6 Q4 2009

Average trade net working capital as a percentage of sales by quarter

(63)

Retail Network

Number of own retail stores: 791

622 Sep. 30, 2012 Closings Asia/Pacific Americas Europe* Dec. 31, 2011 +122 +22 +40 -15 + 48 Spain + 25 France + 23 Switzerland + 7 Belgium + 4 Italy + 3 Germany + 3 Poland + 2 Austria + 2 Netherlands + 2 Portugal + 1 Luxemburg + 1 Sweden + 1 UK + 11 Canada + 6 USA + 4 Mexico + 1 Brazil + 24 China + 11 Taiwan + 4 Japan + 1 Australia

(64)

Level I ADR program to launched in January 2013

ADR Details Benefits of ADRs for

U.S. investors

Clear and settle according to normal U.S. standards

Offer the convenience of stock quotes and

dividend payments in U.S. dollars

Can be purchased/sold in the same way as

other U.S. stocks via a U.S. broker

Provide a cost-effective means of

international portfolio diversification

Market OTC

Symbol BOSSY

CUSIP 444560106

Ratio 5 : 1

Country Germany

Effective Date Jan 18, 2013

Underlying SEDOL B88MHC4

Underlying ISIN DE000A1PHFF7

Depositary BNY Mellon

Hong Kong Joe Oakenfold New York Ravi Davis London Mark Lewis

(65)

Financial calendar 2013

Date

Event

March 14, 2013 Press and Analysts’ Conference

May 2, 2013 First Quarter Results 2013

(66)

Forward looking statements contain risks

This document contains forward-looking statements that reflect management's current views with respect to future events. The words "anticipate ", "assume ", "believe", "estimate", "expect",

"intend", "may", "plan", "project", "should", and similar expressions identify forward-looking

statements. Such statements are subject to risks and uncertainties. If any of these or other risks and uncertainties occur, or if the assumptions underlying any of these statements prove incorrect, then actual results may be materially different from those expressed or implied by such statements. We do not intend or assume any obligation to update any forward-looking statement, which speaks only as of the date on which it is made.

(67)

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